XRP holds $1.30 as falling futures interest signals weak demand

Key takeaways

• The legislative failure of the CLARITY Act and the Federal Reserve’s latest interest rate hike have weighed on market sentiment.
• Speculative interest is cooling, with XRP futures open interest dropping from 2.25 billion to 2.12 billion tokens.
• Crucial technical support is holding between $1.26 and $1.28, bolstered by the 50-day and 100-day EMAs.

Ripple’s XRP faced ongoing downward pressure on Friday, hovering just above the $1.30 mark as buyers fought to hold key short-term moving average support levels.

The cryptocurrency has struggled to find upward momentum since peaking at $1.50 on Monday. Investor sentiment took a hit after the U.S. Senate failed to push forward the CLARITY Act, coupled with the Federal Reserve’s decision to raise its benchmark interest rate by 25 basis points, bringing it to a range of 3.75% to 4.00%.

While rising interest rates typically drain liquidity and dampen appetite for high-risk assets like cryptocurrencies, the Fed’s move was widely expected, which helped cushion the immediate market impact.

Ripple highlights XRP’s existing legal clarity

Despite the setback in Congress, Ripple maintains that XRP possesses a distinct regulatory advantage stemming from its prolonged legal battle with the Securities and Exchange Commission.

According to Ripple, the court ruling confirmed that XRP is not inherently a security, providing the asset with a stable legal foundation even in the absence of a comprehensive federal cryptocurrency framework in the United States.

While the company conceded that the CLARITY Act would have delivered much-needed regulatory certainty to the broader digital asset sector, it emphasized that XRP already stands on “settled ground” compared to its peers.

Meanwhile, activity in the derivatives market has slowed alongside the token’s cooling price action. Futures open interest slid to 2.12 billion XRP on Friday, down from 2.25 billion the previous day, marking a substantial decline from the 2.78 billion XRP recorded on August 15.

This drop in open interest suggests that leverage traders are either unwinding their positions or hesitating to open new ones. If this trend persists, XRP may lack the speculative fuel required to spark another rally toward $1.50.

Even so, the token showed signs of stability following the Fed’s anticipated rate hike.

Markus Levin, co-founder of XYO, pointed out that the central bank’s upgraded economic growth forecast indicates that policymakers do not believe the U.S. economy is headed toward a severe downturn.

Nevertheless, the broader consequences of increased borrowing costs may still unfold progressively as financial conditions continue to tighten.

XRP bulls defend the $1.26-$1.28 support zone

On the technical front, XRP is holding above its 50-day and 100-day exponential moving averages (EMAs), which are currently offering support near $1.28 and $1.26, respectively.

Overhead, the 200-day EMA at roughly $1.36 serves as the primary barrier. A convincing move above this resistance level could revitalize buying momentum and pave the way for another test of the $1.50 level.

For now, technical indicators point toward a period of consolidation with a slightly bearish bias. The Moving Average Convergence Divergence (MACD) remains below the zero line, and its widening negative histogram reflects fading upward momentum.

Additionally, the Relative Strength Index (RSI) is hovering at 49, just under the neutral 50 threshold.

A daily close below the critical $1.26–$1.28 support zone would likely validate the bearish trend and open the door to a more pronounced correction.

On the other hand, if buyers successfully defend this range and push the price back above $1.36, it would signal that the bulls are regaining control of the market.